A coalition that was awarded $7 billion for climate and housing projects has sued the Trump administration and Citibank, accusing them of unlawfully blocking access to the funds.
Gloria Gonzalez reports for POLITICO.
In short:
- Climate United, a recipient of U.S. Environmental Protection Agency grants under the Greenhouse Gas Reduction Fund, filed suit to force Citibank to release the money and prevent the EPA from interfering.
- The lawsuit argues the Trump administration is illegally withholding funds appropriated by Congress and violating contract law and the Constitution.
- The EPA has criticized the fund as a “green slush fund,” but has not formally accused Climate United of misusing money or violating grant terms.
Key quote:
“EPA has failed to provide Climate United with a reasoned explanation for its actions or a meaningful opportunity to object or to be heard.”
— Climate United lawsuit
Why this matters:
The lawsuit highlights the ongoing battle over climate funding as the Trump administration seeks to undo Biden-era policies. The Greenhouse Gas Reduction Fund, the largest program in the 2022 Inflation Reduction Act, was designed to drive private investment in clean energy and infrastructure. Blocking these funds could stall renewable energy projects, slow efforts to cut emissions, and impact jobs in the green sector. The case also raises broader questions about an overreach of executive branch power in withholding congressionally approved funds.
Related: Nonprofits still blocked from $20 billion in climate funds amid investigations
